DOGE Needs to Take a Deep Dive into California’s Bankrupted Medi-Cal Program – California Globe

By Katy Grimes
California Globe

California Governor Gavin Newsom’s Medi-Cal program is insolvent.

Newsom just confessed last month that California’s Medi-Cal is insolvent. Medi-Cal is California’s Medicaid program, a public health insurance program which provides needed health care services for low-income individuals. As California Congressman Kevin Kiley noted, “the cost of Newsom’s policy of giving free coverage to every illegal immigrant in the state has ballooned to $9.5 billion, and he’s now asked for a $3.4 billion “loan” just to continue making payments for this month.”

That number has grown: Newsom now needs to borrow $6.2 billion to cover Medi-Cal expenses to cover the massive shortfall in Medi-Cal, California’s version of Medicaid, free to low-cost health coverage for low-income individuals and families, “regardless of their immigration status,” the Globe recently reported.

And that is because Gov. Newsom expanded Medi-Cal to cover all illegal aliens. The bills are coming due and Newsom is overdrawn – with no checks left.

Assemblyman Carl DeMaio (R-San Diego) said “I uncovered this cost spike 2 weeks ago…and got removed from Budget Committee for exposing it,” on X. “CA Governor asks for emergency $3.4B loan to cover Medi-Cal cost spike for free health care for illegal immigrants.”

DeMaio said the program has no money left. “It is broke. It is insolvent. They can’t pay hospitals, doctors, nurses and health care providers, which means giving free health care to illegal immigrants puts the health insurance security for the neediest among us at risk, ”DeMaio told Fox Business. “Children, seniors, others that cannot afford it are being threatened with their health coverage because we gave away the store to illegal immigrants. It needs to stop. Governor Newsom’s Medi-Cal system should be audited by the Trump administration immediately.”

“My constituents in my district, if they want the bronze plan under Obama care for a family of four, that’s $16,000 a year. Illegal immigrants get it free. So the first thing that’s wrong about this policy is it incentivizes illegal immigration by providing a carrot to attract illegal immigrants into this country,” DeMaio added. “Second of all, we were lied to when the governor said it would be reimbursed by the federal government. It’s not. It’s hitting the general fund.”

Congress is eyeing potentially dramatic cuts to Medicaid. State Republicans like Assemblyman Carl DeMaio and Senate Minority Leader Brian Jones have been hammering the $8.4 billion price tag for being far higher than the original estimate, critiques that made it all the way to Elon Musk’s posts on X.

Assembly Republicans are calling for an audit of the program to determine why costs are rising so rapidly.

In a letter to the chair of the Joint Legislative Audit Committee (JLAC), Republican lawmakers requested an investigation to explain why Medi-Cal’s cost overruns are so severe, how the Newsom administration failed to accurately estimate the program’s budget, what steps have been taken to stabilize the program, and to what extent did the governor’s expansion of benefits to illegal immigrants contributed to the program’s fiscal crisis.

DeMaio said in an email, “illegal immigrants are now receiving 1-out-of-4 dollars for MediCalprogram” in the state general fund budget! I will call on Newsom to use emergency powers to immediately suspend the healthcare handouts to illegal immigrants at taxpayers expense before the whole Medi-Cal system collapses.”

“General Fund spending on Medi-Cal has nearly doubled in six years to $42.1 billion, and total spending on Medi-Cal has grown by 84% to $188.1 billion,” Assembly Republicans reported. “Republicans cited the expansion of Medi-Cal benefits to illegal immigrants as amajor reason for the increase, with current-year costs at $9.5 billion, including $2.8 billion in unanticipated costs.” 

“Democrats’ bad accounting has brought Medi-Cal to the breaking point, making it harder for patients to get in to see a doctor,” said Assembly Republican Leader James Gallagher (R-East Nicolaus). “We owe it to Californians — and to the vulnerable people who depend on this program — to make sure Medi-Cal is meeting their needs.”

The letter requesting the audit is available HERE.

It’s time for the Trump administration to DOGE California’s Medi-Cal system.

originally published by California Globe